Society - Stakeholder Theory:.
Mulligan and Simon et al state that decision-making is concentrated on three types of business activities, in order of priority: functional duties, negative injunctions, and affirmative duties (Simon, Powers, and Gunnemann 61). .
Functional duties are normal activities of a business dictated by a moral minimum, where the survival is imperative. Negative injunctions and affirmative duties are distinguished as not inflicting harm and supererogatory actions respectively. Simon et al argues that it is hard for society to impose legitimate affirmative duties on corporations with regards to the welfare of society. Instead it is easier to impose legitimately negative injunctions. Thus, it is morally acceptable for society to prevent companies from polluting than to impose obligations to donate to charity.
The precedence of functional duties over others can be validated by Mulligan's case of a capable inventor whose efforts create a value that is derived intrinsically from performing his job (Mulligan 71). This value advances social good and can be applied to business. The success of business should not be limited to the accumulation of wealth but also the value businesses contribute to society through its role. Thus corporations must first recognize this intrinsic value created by business. This could arguably possess the greatest potential for social achievements, even surpassing social good resulting from affirmative actions and negative injunctions, while remaining within profit making grounds. Therefore SST adopts a utility maximizing quality in decision-making.
The notion of justice is added to SST to compensate all stakeholders fairly, based on their contributions to business. However when disagreements arise whereby different stakeholders' contributions cannot be objectively assessed, virtue ethics is applied. Here moral character of the decision maker ultimately determines social good of an action.